International Financial Reporting Standards (IFRS)

IFRS for Small and Medium-sized Entities (SMEs)
Section 31: Hyperinflation

1. SME 31 applies to an entity
--> if the functional currency of the entity is (A)
--> (A) currency of a hyperinflationary economy

2. Possible indicators of hyperinflationary economy
(1) cumulative inflation rate over 3 years >= 100%
(2) interest rates and wages are linked to a price index

3. If the functional currency of the entity is (A)
--> (A) currency of a hyperinflationary economy

4. Financial statements are restated
--> using a general price index